Driving Donor Retention With Matching Gifts [A Guide]

Driving Donor Retention With Matching Gifts [A Guide]

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In recent years, donor retention rates have been hovering slightly above 40%. This means that if you have 100 donors, roughly 60 of them are only making one-time donations⁠, while around 40 are coming back to give again. If the focus on donor retention isn’t strong and comprehensive, a nonprofit organization will need to concentrate on the acquisition of new donors instead⁠—a notably vital but often more costly pursuit.

Luckily, there are numerous ways to boost donor retention and keep donors coming back. For example, did you know you can improve donor retention by using matching gift programs? That’s what we’ll cover here, specifically by addressing:

We’ll dive deeper into each topic and provide you with actionable tips to help you retain donors for your cause. Let’s begin!

Why Is Donor Retention Important?

When a donor continues to give to your nonprofit, the most obvious benefit is the regular extra revenue. However, keeping donors coming back has additional rewards, too.

  • First, your organization has the opportunity to develop meaningful relationships with donors. Think about it this way: you can’t cultivate a friendship with someone if you’ve only met them once. The same principle applies to building donor relationships. A donor that continues to give to your cause is much more likely to volunteer at your next event, serve on your board of directors, and advocate for your cause.
  • Meanwhile, a donor that has a strong connection to your cause is also more likely to share their passion for your mission with others, which could lead to even more donors. For instance, you might launch a peer-to-peer campaign where your supporters raise money on your behalf. When donors share their personal experiences with their friends and family, it can be a great tool to acquire new donors.
  • Finally, retaining donors means you can gain helpful feedback through these meaningful relationships. A donor that’s truly invested in your cause can provide suggestions and advice on how you can improve your stewardship, outreach, and much more.

By implementing their suggestions, you’ll not only gain their trust but also show other potential supporters that you will listen to their concerns.

The Power of Corporate Matching Gifts

Corporate matching gifts are one of the most effective yet underutilized tools in nonprofit fundraising. These programs allow companies to match their employees’ charitable contributions, effectively doubling (or sometimes tripling) the impact of each donation. For nonprofits, this means more funds to support their mission, while donors see their generosity go even further—all at no additional cost to them.

While it can vary from company to company, most matching gift programs follow a simple process:

  1. Employee Makes a Donation – A donor gives to their favorite nonprofit.
  2. Employer Matches the Gift – The donor submits a matching gift request to their employer.
  3. Nonprofit Receives Additional Funds – Once approved, the company sends a matching donation to the nonprofit.

While the process may seem straightforward, studies show that billions of dollars in matching gift funds go unclaimed each year simply because donors aren’t aware of these programs⁠—or don’t know how to take advantage of them. That’s why it’s crucial for nonprofits to educate their supporters and streamline the matching gift process.

The Link Between Matching Gifts and Donor Retention

While there is a surplus of helpful donor retention advice out there, it is worthwhile to note the mutually beneficial union that results from combining matching gifts and donor retention.

Specifically, matching gifts can help drive donor retention by…

1. Showing that your nonprofit is a good steward of donors’ funds.

One of the key reasons donors continue supporting a nonprofit is trust—trust that their contributions are being used effectively to make a real impact. When a nonprofit actively promotes and facilitates matching gifts, it signals to donors that the organization is committed to maximizing every dollar received. This demonstration of financial stewardship plays a critical role in building long-term donor relationships and driving retention.

2. Keeping your organization at the front of donors’ minds.

One of the biggest challenges nonprofits face in donor retention is staying top-of-mind after the initial donation. After all, many donors give once and then disengage. However, matching gifts provide a natural way to extend donor engagement beyond the moment of giving, keeping your nonprofit in their thoughts for a longer period and increasing the likelihood of future support.

Not to mention, sending communications about matching gifts to dedicated donors, whether through email, snail mail, or social media, will help them stay involved with your organization without feeling pressured to donate more of their own money. If you only talk to your donors when you want their donations, they’re less likely to continue supporting your cause.

3. Encouraging larger future donations.

One of the most compelling ways matching gifts drive donor retention is by encouraging larger future donations. After all, research indicates that when donors are aware of a matching gift opportunity, they are more likely to give—and to give in greater amounts. This increased generosity not only boosts immediate fundraising efforts but also fosters long-term donor commitment, leading to higher retention rates overall.

In fact, when nonprofits mentioned matching gifts when asking for donations, response rates jumped 71%, and average donation amounts increased by over 50%.

Letting donors know that they can make a greater impact with their donations generates a higher response to future appeals and results in larger contributions than ever before.

Strategies for Increasing Donor Retention With Matching Gifts

Now that we’ve established a connection between matching gifts and donor retention, it’s time to cover the ways in which your team can use the former to increase the latter.

Explore these proven strategies we’ve developed from working with thousands of organizations to maximize matching gifts.

1. Send a match appeal immediately after a donor gives.

One of the most effective ways nonprofits can drive donor retention through matching gifts is by sending a match appeal immediately after a donor gives. This timely follow-up not only increases the likelihood that donors will submit a matching gift request but also reinforces their connection to your organization—encouraging long-term engagement.

If you don’t know who your donor’s employer is, supply them with general information about matching gifts after they’ve donated, either in an acknowledgement or thank you email or in a separate follow-up entirely.

If you’ve done your homework and know where your donor works (and, more importantly, if their employer offers a matching gift program), provide them with company-specific information (such as program guidelines and links to matching gift forms) to help them get started.

Here’s how one organization does so:

Driving donor retention with matching gifts using acknowledgment emails

2. Notify donors when their company’s matching gift is received.

A crucial yet often overlooked step in the matching gift process is informing donors when their company’s matching contribution comes through. This follow-up communication not only acknowledges the donor’s role in securing additional funding (and provides you with another chance to thank them) but also reinforces their connection to your organization—boosting donor retention.

Depending on how fast the donor’s company processes the gift-matching paperwork and sends the money to your organization, it could be weeks or months until the donor’s matching gift comes in. They might have forgotten about it by that point. Letting them know that their matching gift was received is another excellent way to reestablish contact with a donor, potentially encouraging them to donate (and get their gifts matched) in the future.

Take a look at the thank-you card one institution sent its matching gift donors:

Driving donor retention with matching gifts using thank-you notes

3. Use social proof to demonstrate matching gift success.

One of the most powerful ways to drive donor retention through matching gifts involves showcasing real-world examples of their impact using social proof. When donors see that others are successfully doubling their contributions—and making a greater difference—they feel more confident and motivated to continue supporting your cause.

Here’s how social proof drives matching gifts and donor retention alike.

  • Creates a Sense of Community – People are more likely to stay engaged when they see that others like them are taking action. Highlighting matching gift success stories fosters a sense of shared purpose and encourages donors to feel like part of a larger movement.
  • Reinforces the Effectiveness of Giving – When donors see tangible evidence that matching gifts are successfully doubling impact, they gain reassurance that their contributions are making a meaningful difference. This confirmation increases the likelihood of future giving.
  • Builds Trust and Credibility – Transparency is key to donor retention. Showcasing real results—such as total funds raised through matching gifts or testimonials from donors who’ve had their gifts matched—demonstrates that your nonprofit is effectively leveraging these opportunities.

In order to do so, consider sharing matching gift donor testimonials, highlighting matching gift impact stories on your cause, and showcasing KPIs and other impactful metrics. By incorporating social proof into your donor communications, you create an environment where donors feel inspired, validated, and eager to continue supporting your nonprofit. The more they see others engaging in matching gifts, the more likely they are to remain committed—helping to drive long-term donor retention and fundraising success.

Check out this organization’s usage of social proof in its annual report:

Driving donor retention with matching gifts using social proof

Wrapping Up & Additional Resources

Unfortunately, making sure that donors stick around can be tricky. However, donor retention is essential for the long-term sustainability of any nonprofit, and corporate matching gifts provide a powerful strategy to keep donors engaged and committed in the long run. By leveraging matching gifts, organizations can amplify donor contributions, reinforce financial stewardship, and create ongoing opportunities for meaningful engagement.

Now is the time to integrate matching gifts into your donor retention strategy. With the right approach⁠—and the right tools to power it⁠—you’ll not only increase donations but also turn one-time contributors into lifelong advocates for your mission.

For even more helpful fundraising and matching gift tips, keep reading these additional recommended resources:

Interested in learning more about boosting donor retention? Check out this immersive webinar on the topic!

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